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Digital dealeroctober2008 d-addefinemetrics-v1


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Digital dealeroctober2008 d-addefinemetrics-v1

  1. 1. #216 - Digital Advertising: What is It and How Should We Measure It?Yes Virginia, the world isn’t flat and there is no such thing as a $20 lead!<br />As more money gets shifted from traditional offline advertising media into online interactive media, the ability to create a wide variety of consumer experiences around receiving a dealer’s message brings new possibilities. What are a few of these new ways for dealers to engage car buyers and how do we measure what messages are more effective than others?  This session will explore online advertising from the perspective of generating consumer engagement and creating a positive perception of the dealership, while debunking the myth of the $20 lead.  Paglia will present the concept of Key Buying Activities (KBA) from a dealer perspective and how to track and measure them.  The session will showcase actual dealership case studies and provide access to spreadsheets and document templates that attendees can repurpose for their own use. <br />
  2. 2. INTRODUCTIONS: Ralph Paglia<br /> ADP Dealer Services<br /> Director - Digital Marketing<br /><ul><li>Recognized industry expert in Automotive Digital Marketing, Advertising, Lead Management and CRM Process design
  3. 3. Responsible for driving 144,000+ leads to single-point dealer in 2 years and developinga team that sold 4,000+ Vehicles to Internet Leads in 2006.
  4. 4. Strategic marketing planner and consultant to car companies, dealer groups and national enterprise automotive organizations
  5. 5. Deep history of developing Digital Marketing strategies and tactical CRM implementation blueprints for dealers and car companies
  6. 6. Managed first retail automotive pilot program for Google Audio while in beta testing while at Courtesy Chevrolet in 2005, 2006 and 2007
  7. 7. Started generating Internet leads in 1988 using CompuServe ISP access and vehicle listings on defense contractor BBS’s in SoCal</li></ul>Cell: 505.301.6369 <br />
  8. 8. What’s Hot vsWhat’s Not - Automotive Digital Marketing 2009<br />
  9. 9. Digital Advertising Advantages<br />1. Online Display Advertising<br />Ad Networks<br />Automotive Websites<br />Local Media Websites<br />National Websites<br />Behavioral Targeting<br />Geotargeting<br />Contextual Targeting<br />2. Search Engine Advertising<br />CPC/PPC/Sponsored Links<br />3. Offline Ad Buying Efficiency<br />Google Audio (radio)<br />Google Print (newspaper)<br />Google TV<br />MEASURABLERESULTS<br />QUALITY TRAFFIC<br />HIGHLY TARGETABLE <br />COST EFFECTIVE ROI<br />
  10. 10. Why doesn’t local dealer advertising have the same impact on showroom traffic as it did 10 years ago?<br />1. IDC Study, U.S. Consumer Online Behavior Survey Results 2007<br />2. 2007 National Automobile Dealers Association Data<br />
  11. 11. Different media channels are more effective at distinct stages of the automotive shopping funnel<br />Advertising Media Channels<br />TV Ads<br />Radio Ads<br />Digital Advertising<br />Outdoor<br />Awareness<br />Familiarity<br />Consideration<br />Newspapers<br />Visit Dealer<br />Purchase<br />
  12. 12. Source: DoubleClickTouchpoints III<br />
  13. 13. “Which one of these information sources was most important when making decisions about buying your vehicle?”<br />R.L. Polk 2007<br />
  14. 14. Digital <br />Advertising<br />Results?<br />
  15. 15. Digital Advertising<br />Measurement& Analysis<br />
  16. 16. Campaign Example #1 – Southeast USA; Pickup Trucks<br />This campaign ran for new pickup trucks across multiple states in the Southeastern USA. Conversion to a “Key Buying Activity” (KBA) is defined as “printing out a test-drive certificate.” As Figure 4 shows (next slide),Careers & Education generated the best blend of performance, including click-through and conversion rates… Dating & Social Networking was the highest-performing conversion category. Autos & Transportation had a conversion rate dramatically lower than the average of the campaign while the click-through rate was only slightly higher than the average. Here’s the point;guessing where in-market auto buyers can be found and sticking to that without looking at any campaign data will not lead to campaign success. The true benefit of this data for the dealer and his digital marketer is not only in understanding this campaign’s performance, but also in being able to use the data to more accurately target their online advertising investments going forward – both within the current campaign and future ones… By removing low performing categories, performance will increase.<br />
  17. 17. The size of the bubbles show the volume in terms of impressions served for each category… The placement of the bubbles represents performance in terms of click-through and conversion rates…<br />The vertical dashed line represents the average click-through rate for the campaign.<br />The horizontal dash line represents the average conversion<br />rate for the campaign<br />Regional Truck Campaign #1 Click-Through & Conversion Rates by Site Category and Traffic<br />Figure 4<br />
  18. 18. Campaign Example #2 – Texas; Full-Size Pickups<br />Campaign ran for a full sized pickup truck in Texas. KBA Conversion defined as providing personal information to a dealer (Lead), or “watching the one minute and thirty second video in its entirety.” Figure 5 on next slide shows that Science and Nature performed better than other categories in clicks while Money & Finance outperformed all categories in conversions. This is interesting because Money & Finance is traditionally thought to be a fit for luxury vehicles, not full-size pickup trucks. Second, traditional thinking tells us that consumers within Money & Finance sites are “time-challenged”. Yet this group spent more time than any other group watching the video. Clearly, stereotypes continue to be challenged. Autos & Transportation sites performed below the campaign average both in terms of click-through and conversion rate.The assumption that a category consisting of automotive enthusiasts is the best way to reach consumers who are ready to buy a car within the next four or six weeks proves to be incorrect. These types of auto sites are sometimes even referred to as “in-market” sites when real campaign data continues to suggest that in-market buyers can be more successfully found on other sites in other categories.<br />
  19. 19. Click-Through and Conversion Rates by Category and Associated Volume<br />The size of the bubbles represents<br />the volume in terms of impressions served for each category. The placement of the bubbles represents the performance in terms of clicks and post-click conversion rates…<br />The vertical dashed line represents the average click-through rate for the campaign.<br />The horizontal dashed line represents the average conversion rate for the campaign<br />Figure 5<br />
  20. 20. It’s not ONLY about generating leads, it’s also about the majority that shop online and buy offline!<br />71%<br />68%<br />67%<br />64%<br />22%<br />21%<br />21%<br />20%<br />
  21. 21. $1.90 Cost per Online Car Shopper that actually clicked through to Dealer’s web site<br />16,266 Online Car Shoppers driven to Dealer’s Sites in 4 months.<br />$1.51 Cost per 1,000 Online Car Shoppers that saw the Dealer’s advertisements<br />Online Car Shoppers saw Dealer’s Ads over 20 Million times in the same 4 months.<br />
  22. 22. What to Look at when measuring a Digital Advertising Campaign<br />
  23. 23. Digital Ad Campaign Metrics Analysis Example (4 Month PPC & Display Ads)<br />$71,801.30 Campaign Cost – How much spent on Digital Advertising Campaign<br />$2.16 Cost per Thousand (CPM) - How much to get 1,000 Impressions<br />$2.43 Average Cost per Visitor to dealer’s site<br />$31.94 Average Cost per Lead Generated<br />$412.65 Average Cost PVR (compares to $610 YTD)<br />33,257,657 Impressions Generated – How many times the ad was seen<br />29,528 Click Throughs- Visits to the dealers web sites, landing pages and micro sites<br />2,248 Leads Generated - Electronic Leads and Phone Calls Generated<br />174 Vehicles Sold – You know what this means! Counts Phone & Internet, but NOT showroom<br />
  24. 24. Average monthly total vehicle sales for year prior to starting digital advertising was 144. Since starting with digital advertising sales have averaged 178 units per month. 24% growth in sales volume attributed to increased showroom traffic, phone calls and Internet leads from digital ad campaigns. Dealer’s CRM tool shows a 22% average increase in showroom traffic. Toll Free Ad Tracking reports show 24% increase in phone calls, with increased call volumes coming in from dealer web site. Dealer web site Internet leads have increased 33% since starting digital advertising campaigns. Dealer invoicing from ADP Digital Advertising Program using campaign examples above is:<br />Digital Advertising Media Purchases……..……..………..$ 5,495.21<br />Media Management Services…...………...………………..$ 1,099.04<br />Account Services……………………………………………..$ 495.00<br />----------------<br />Total Digital Ad Invoice………………………………………$ 7,089.25<br />Net Cost Per Site Visit Generated…………………………..$ 1.80<br />Net Cost Per Thousand Ad Impressions…………………..$ 0.78<br />Case Study #4: Dealer name and URL’s changed to protect confidential marketing strategy.<br />
  25. 25. Average monthly sales prior to starting digital advertising was 62. Since starting digital advertising, sales have averaged 75 units per month. 21% growth in sales volume attributed to increased showroom traffic, phone calls and Internet leads from digital ad campaigns. Logs show 33% increase in showroom traffic. Phone Tracking reports show 38% increased call volumes coming in from dealer web site. Dealer website leads have increased 50% since starting digital advertising campaigns. Dealer invoicing from the ADP Digital Advertising Program for Dealers using campaign examples shown above is as follows:<br />Digital Advertising Media Purchases……..……..………$ 3,144.69<br />Media Management Services…...………...……………..$ 628.94<br />Account Services…………………………………………..$ 495.00<br />----------------<br />Total Digital Ad Invoice……………………………………$ 4,268.63<br />Net Cost Per Site Visit Generated……………………….$ 2.15<br />Net Cost Per Thousand Ad Impressions………………..$ 3.20<br />Case Study #5: Dealer’s name, location and URL’s changed to protect confidential marketing strategy.<br />
  26. 26. “Our experience with using Digital Advertising has been nothing short of fantastic. We have used Online Advertising and Radio Campaigns to blanket our market area with great success… <br /> From January 21, 2008 to February 29, 2008, we used Digital Audio Campaigns to run 1,184 radio spots that aired on 24 stations in our market… These radio ads have aired during peak drive times from 6am to 7pm weekdays and cost a fraction of what we usually have to pay. <br /> At the same time we ran an online advertising campaign that produced 2,492 visitors to our website and generated 20,774,648 Impressions. “ <br />- Darin WadeGeneral Manager Rich FordAlbuquerque, NM<br />
  27. 27. Reaching More Car Buyers with Less Money<br />
  28. 28. Digital Advertising Examples:<br />Search Engine Advertising<br />
  29. 29. Digital Advertising:Google Search Engine Advertising<br />Also called Cost-Per-Click (CPC) andPay-Per-Click (PPC), Google calls Search Ads: “Sponsored Links”<br />
  30. 30. Digital Advertising:Yahoo! Search Engine Advertising<br />Also called Cost-Per-Click (CPC) andPay-Per-Click (PPC), Yahoo calls their Search Ads:<br />“Sponsored Results”<br />
  31. 31. SponsoredLinks (paid search listings) are displayed at top and right side of search results page…<br />
  32. 32. Ford Dealer listings on local search maps are shown when a community name is used in search query…“Local Business Results”<br />
  33. 33. Organic (free) web site Links are listed in the middle/left/lower section of the search query results page…<br />
  34. 34. Digital Advertising Examples:<br />Display Advertising on Consumer Facing Websites<br />
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  39. 39. How does buying Digital Advertising work?Can dealers use online ads to drive Traffic?*<br />How to Get it Done:<br />In-House: Do It Yourself <br />2 Day Digital Advertising Setup and Training Visit <br />ADP Digital Advertising Program for Dealers <br />Other SEM Service Providers & Ad Agencies<br />Tier 2 Dealer Advertising Association<br />OEM Digital Ads<br />Types of Online Advertising Buys:<br />Pay for Placement by Time (fixed monthly fee)<br />Pay per Click (PPC or CPC)<br />Pay per Thousand Impressions (CPM)<br />Pay per Conversion (CPA) Leads & Calls Generated<br />*Traffic = Showroom, phone and visits to your web sites<br />
  40. 40. Digital <br />Advertising<br />Results<br />
  41. 41. Here In Dallas, TX we used Digital Advertising to drive traffic to CBS’s to supplement their TV, Radio and Outdoor advertising campaigns that utilized their own media channels… Exceptionally high click-through rates reflect the synergies achieved with Integrated Marketing campaigns that utilize on and offline media<br />
  42. 42. In less than an hour, we set up Site Targeted Online Display Ads, Search Engine Ads, Radio Ad Campaigns on 24 stations, and a Saturday/Sunday Full Page Newspaper Ad Campaign…<br />
  43. 43. Digital Ad Media Purchases…………………$ 6,389.72<br />Media Buying Service.…………...…………..$ 1,277.94<br />Account Services……………………………..$ 495.00<br /> ----------------<br />Total Digital Ad Invoice…………….……$ 8,162.66<br />Net Cost Per Thousand Impressions…$ 0.31<br />Net Cost Per Visitor……………………...$ 2.13<br />
  44. 44. 75%<br />Increase in Sales Calls<br />From Dealer Web Site <br />Rich Ford Results <br />Digital Advertising Campaigns(Feb 1- Mar 31) = Same Days Tracked<br />Website 800 Sales Line =<br />492 total Calls<br />
  45. 45. Rich Ford 2008 Results:<br />#1 in sales volume for their region 2008 YTD<br />February-March 2008 Sales Performance: <br />120 TOTAL NEW CARS 31.9%increase from 2007<br />217 TOTAL NEW TRUCKS2.8%increase from 2007<br />
  46. 46. Digital Marketing Call To Action<br /> Go to and get a no-charge Search Marketing Analysis sponsored by the ADP Digital Marketing Team… An ADP Digital Advertising Team specialist will review results with you.<br />
  47. 47. Thank You for Attending!<br /><br />Cell: 505-301-6369<br />Three ways that we can help:<br />Sell you a a rod and reel<br />Teach you how to fish<br />Cook dinner for you<br />www.AutoDigitalMarketing.comForum: Presentation File Exchange<br /> Rate the Trainer!<br />